What is the responsibility of the Renting City/Custodial City in all cases of converted Budget vehicles?

According to Budget's 2025 Franchise Disclosure Document, the Renting City or Custodial City has specific responsibilities when a vehicle is converted, meaning it is not returned upon demand. In all cases of converted vehicles, the Renting City or Custodial City must cooperate with the Owning City to ensure the vehicle is reported as stolen. This is a universal requirement, regardless of the circumstances of the conversion.

Other responsibilities of the Renting City vary depending on the reason for the vehicle's conversion. If the vehicle is converted due to improper qualification of a renter, the Renting City will purchase the vehicle from the Owning City at its book value as of the rental's start date. The Owning City can request payment 60 days after the vehicle's due-in date. If the converted vehicle is recovered within 60 days of the due date, the Renting City forfeits its percentage of all revenue splits on collected revenue up to the recovery date. If the converted vehicle from an unqualified renter is damaged, the Renting City is liable to the Owning City for the full amount of damages, up to the vehicle's book value.

These stipulations highlight the importance of proper renter qualification procedures for Budget franchisees. Failing to properly vet renters can result in significant financial liabilities if a vehicle is converted. The requirement to cooperate with the Owning City in reporting the vehicle as stolen underscores the need for clear communication and adherence to established protocols within the Budget franchise system. Franchisees should ensure their staff are thoroughly trained on renter qualification and vehicle recovery procedures to minimize potential losses from vehicle conversions.